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The State and Federal Government has been urged to provide clarity and urgent support for Victorian businesses reeling at the return to lockdown, just as they were beginning to find a path out of this crisis.

With the Victorian lockdown now expected to run at least to the end of August — just weeks before the JobKeeper stimulus is set to end — businesses must get immediate clarity and support.

Pitcher Partners Melbourne managing partner Brendan Britten said many businesses would be scrambling to understand yet another set of rules and would need to recalculate their options.

Even with help, it was expected many would choose to shed staff or close their doors.

“This decision will have enormous impact on the lives of Victorians and for business owners who have done their best to hold things together through the first round of restrictions, this setback will be significant,” he said.

“For some, it will be crushing. For others, it will cause panic to set in, and they will feel unable to make decisions or choose the right path.”

Britten said mid-sized businesses, which together drive about a quarter of Australia’s economic growth, need urgent clarity around what assistance they could access for an extended lockdown.

If Government estimates of a six-week of Australia’s remain correct, there will only be a few weeks between the easing of restrictions and the end of JobKeeper and other stimulus measures, including the moratorium on insolvency actions.

That will give little time for business to readjust.

“We are going to be looking for a clear plan from Government for the economic fallout from the resurgence of the virus — this will be as important to manage as the health crisis in Victoria and we are going to want to see swift and decisive action,” he said.

“Critical for businesses is to understand what elements are in any additional support, and whether there is anything else in existing packages they can access or use to bridge the gap back to normal
trading.

“If they haven’t pulled the trigger on seeking support from landlords and banks, now is the time.

“Businesses also need to have an immediate, short and medium-term plan, to survive the next six weeks and next six months and look at how they can manage if and when government assistance is withdrawn.”

Britten said the decision to re-enter lockdown was a difficult one for the Victorian Government make and would be a difficult one for businesses to live with.

“There are measures business owners can and should take now to ensure they can adjust and adapt to the lockdown,” he said.

“Urgent advice is key to helping businesses navigate the next six weeks and beyond, so they are better positioned for recovery in 2021.”

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